Parsvnath Developers has won an arbitration award worth Rs 1,034.53 crore, the company informed the BSE. It said the development agreement that the company and its associate firm Parsvnath Rail Land Project (PRLPPL) had with Rail Land Development Authority (RLDA) for implementation of a project at Sarai Rohilla-Kishanganj in New Delhi had been terminated. Disputes arising under the development agreement are pending adjudication before the arbitral tribunals, where the company and PRLPPL have claimed more than Rs 1,500 crore. “In one of the two arbitral proceedings, where the company and PRLPPL had, inter-alia, sought an award of Rs 1,034.53 crore has since resulted in the tribunal passing an award, whereby the claim of Rs 1,034,53 crore made by the company and PRLPPL has been upheld and RLDA has been directed to pay the same along with interest at the rate of 4% per annum from July 15, 2015 till the date of payment,” the company said. The company and PRLPPL are in consultation with legal counsels for further course of action, it said.
In May 2013, a development agreement was executed between RLDA and PRLPPL, a special purpose vehicle (SPV) created to develop this project. However, in February last year, Parsvnath Developers terminated its development agreement with the RLDA due to a title dispute related to the 38-acre stretch that the company had bought for Rs 1,651 crore through an auction. The company had proposed to develop luxury apartments, commercial/shopping areas, railway housing, railway service building and common facilities, hospital/school and other amenities.